Porsche Delays EV Launch as Volkswagen Faces €5.1B Loss

• Porsche postpones electric model rollout, prioritizes combustion and hybrids amid slow battery vehicle demand.
• Volkswagen Group faces €5.1 billion financial hit, downgrades 2025 profit forecasts.

On September 20, 2025, Cryptopolitan reported that Porsche will delay its electric vehicle rollout, citing slowed demand in the EV market and significant financial repercussions for Volkswagen Group. The shift demonstrates Porsche’s decision to reprioritize combustion and hybrid models in response to evolving market dynamics.

The strategic pivot will result in a €5.1 billion negative impact on Volkswagen’s operating results for the 2025 fiscal year. Cryptopolitan outlined that the total financial hit includes a €3 billion impairment charge on Porsche’s goodwill value and an additional €2.1 billion stemming from revised forecasts and project adjustments. Volkswagen Group has consequently lowered its 2025 operating margin forecast to 2-3%, down from a prior projection of 4-5%.

Porsche, whose original operating return on sales forecast for 2025 ranged between 5-7%, has revised this figure to a maximum of 2%. As part of its updated strategy, the company will delay some all-electric model launches and extend production timelines for legacy combustion and hybrid vehicles such as the Panamera. A new luxury SUV, internally dubbed the K1 and anticipated to replace the Cayenne, will launch with combustion and hybrid versions instead of being fully electric.

Macroeconomic factors have heavily influenced Porsche’s decision. Cryptopolitan noted declining luxury vehicle demand in the Chinese market, elevated U.S. tariffs, and intensified competition reflected in BYD’s market ascent. Porsche and Volkswagen CEO Oliver Blume stated that the company’s strategic realignment was driven by “new market realities and changing customer demands.”

In addition to navigating market challenges, Porsche’s decision coincides with ongoing lobbying efforts among European automakers against the EU’s planned 2035 ban on new combustion-engine vehicles. Cryptopolitan revealed that manufacturers are pressing regulators for more flexible emissions policies, advocating for increased roles of hybrids and low-emission technologies within EU standards. Talks between auto industry leaders and European Commission President Ursula von der Leyen are currently underway to address what the industry views as rigid and potentially unfeasible regulatory goals.